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Foord International Feeder Fund

CLOSED TO NEW INVESTMENT

For conservative, absolute return-oriented investors in global markets

INVEST NOW

INVESTMENT OBJECTIVE

The fund aims to achieve meaningful inflation-beating US$ returns over rolling five-year periods from a conservatively managed portfolio of global investments reflecting Foord's prevailing best investment view.

FOR SOUTH AFRICAN INVESTORS

•    With a moderate risk profile
•    Requiring diversification through investments not available in South Africa
•    Seeking to hedge rand depreciation.

Performance

Returns
Year Fund Return % Benchmark Return % SA Inflation %
2006 (from 01/Mar) 24.9 28.4 5.0
2007 9.2 4.6 8.9
2008 12.6 -19.0 9.5
2009 -6.9 -1.4 6.3
2010 -1.7 -1.6 3.5
2011 19.1 15.9 6.1
2012 16.4 22.3 5.7
2013 42.5 57.7 5.4
2014 8.7 16.3 5.3
2015 36.1 33.3 5.2
2016 -10.5 -3.9 6.8
2017 4.2 10.9 4.7
2018 4.1 6.4 4.5
2019 14.5 25.3 4.0
2020 (to 31/Jul) 22.9 20.8 1.4

Characteristics
Benchmark

To achieve meaningful US inflation-beating ZAR equivalent returns over a full investment cycle.

Time horizon

Longer than three years.

Inception date

1 March 2006

Minimum investment

R50 000 lump sum or R1 000 per month

Significant restrictions

The portfolio may only invest in cash and one other collective investment scheme.

Income distributions

The Foord International Fund, in which the fund invests, does not distribute its income.

Income characteristics

Marginal to zero income yield as the Foord International Fund is a roll-up fund and does not distribute its income.

Portfolio orientation

Fully invested in the Foord International Fund, sub-fund of Foord SICAV, domiciled in Luxembourg.

Risk of loss

Currency volatility means risk of loss in the short term is high. In general, the risk of loss is lower than that of the average foreign equity fund.

Top 10
Security description Asset class Market Portfolio weight %
FMC Corp Equity US 9.3
ETFS Physical Gold Commodity GB 8.4
Nagacorp 9.375% 21/05/2021 Bond SG 6.3
Nestle Equity CH 5.8
Wheaton Precious Metals Corp Equity US 4.9
US Treasury 2.75% 30/11/2020 Bond US 4.9
SSE PLC Equity GB 4.8
Roche Holding AG Equity CH 4.5
CVS Health Corp Equity US 4.0
Alphabet Inc Equity US 4.0
Commentary

Monthly Commentary – July 2020

  • Developed market equities (+4.8%) gained when second quarter corporate earnings surpassed (albeit lowered) expectations—sizeable fiscal and monetary stimulus measures continue to bolster equity markets
  • Emerging markets (+8.9%) outperformed, led by Brazil (+14.2%) and China (+9.4%)—continued oil price stabilisation (+5.2%) and gradual peaking of COVID-19 infections in Brazil served to buoy the country’s bourses
  • Global developed market sovereign and highly-rated corporate bond yields are at record lows with more than 60% of global debt trading below 1.0% and 85% below 2.0%—July’s US Fed meeting reinforced expectations that interest rates will remain low for the foreseeable future
  • The US dollar continued to decline—weakening against the euro (+5.3%), British pound (+6.2%) and Japanese yen (+2.0%)
  • Precious metals gold (+9.5%) and silver (+34.9%) led gains in hard and soft commodities—driven by global central banks pinning interest rates near zero, unprecedented peacetime fiscal deficits and emerging US dollar weakness
  • The fund’s gold ETF and investment in precious metals streamer Wheaton Precious Metals (+23.3%) contributed most to performance—while leading Hong Kong retail property developer Wharf REIC (-25.9%) again detracted on renewed political instability and reaccelerating COVID-19 infections
  • The path to a full economic recovery is considerably uncertain given increasing geopolitical tensions, expensive equity valuations, US elections and the COVID-19 pandemic—the managers remain cautious and the fund retains S&P 500 hedges to protect against these elevated risks
  • The rand (+1.6%) appreciated on positive emerging market sentiment and dollar weakness but has declined 17.9% against the greenback this year—the currency remains vulnerable in the long-term given South Africa’s structural economic weaknesses
Fees

The standard charge rate is a fixed fee of 0.35% plus VAT. A 1.00% annual fee is levied in the Foord International Fund.

WHAT IF YOU HAD INVESTED WITH US IN THE PAST?


Experience the compounding phenomenon of a sustained, long-term investment with Foord.

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Currency
Using rand returns of Foord’s best investment view South African funds. ? In calculating the current value of your hypothetical investment, we have applied the returns of Foord Asset Management’s retirement fund track record from 1 January 1990 to 31 March 2008 (gross of fees) combined with the net returns of the Foord Flexible Fund of Funds from 1 April 2008. Any information provided is not intended nor does it constitute financial, tax, legal, investment, or other type of advice, and the suitability or potential value of any information or particular investment source is not guaranteed. Performance may be affected by changes in the market or economic conditions and legal, regulatory and tax requirements. Distributions may be subject to mandatory withholding taxes. Foord does not provide any guarantee either with respect to the capital or the performance return of investments.
Using US dollar returns of Foord’s best investment view global fund. ? In calculating the current value of your investment, we have applied the long-term returns of the Foord International Trust. These returns are calculated net of fees. Past performance is no guarantee of future performance. Foord Asset Management (Singapore) Pte. Limited disclaims any liability for any loss, liability, or damages (whether direct or consequential) of any nature whatsoever that may be suffered as a result of, or which may be attributable, directly or indirectly to the use of or reliance upon the information provided.
Value Today: R0
Annualised Return: 0%
The annualised return is the effective annual percentage return achieved over the term of the investment. Results for an investment term of less than one year should be treated with caution.

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